I am recommending we roll our General Motors (GM), Micron Technology (MU) and Pfizer (PFE) puts. The income we generate will reduce our net debits on these recovery positions as we work our way toward breakeven.
I am also recommending we roll our Sonos (SONO) call out another week. However, with earnings scheduled to be reported on Nov. 17, we will be closing this position no later than Nov. 12.
GM Nov Week One (11/5) 54 Put
Current Stock Price: $57.50
Net Debit: $1.60
Action:
- Buy to close the GM Nov Week One (11/5) 54 Put for around $0.03
- Sell to open the GM Nov Week Two (11/12) 56 Put for around $0.57
- Set your initial credit limit at $0.54, but adjust as needed to roll today
New Net Debit: $1.06
MU Nov Week One (11/5) 71 Put
Current Stock Price: $71.30
Net Debit: $4.45
Action:
- Buy to close the MU Nov Week One (11/5) 71 Put for around $0.41
- Sell to open the MU Nov Week Two (11/12) 71 Put for around $1.12
- Set your initial credit limit at $0.71, but adjust as needed to roll today
New Net Debit: $3.74
PFE Nov Week One (11/5) 44.50 Put
Current Stock Price: $43.61
Net Debit: $3.25
Action:
- Buy to close the PFE Nov Week One (11/5) 44.50 Put for around $0.92
- Sell to open the PFE Nov Monthly (11/19) 45 Put for around $1.69
- Set your initial credit limit at $0.77, but adjust as needed to roll today
New Net Debit: $2.48
SONO Nov Week One (11/5) 35 Call
Current Stock Price: $34.61
Cost Basis: $35.63 (Note that the cost basis was incorrectly listed as $36.63 in the previous alert.)
Action:
- Buy to close the SONO Nov Week One (11/5) 35 Call for around $0.24
- Sell to open the SONO Nov Week Two (11/12) 35 Call for around $0.68
- Set your initial credit limit at $0.44, but adjust as needed to roll today
New Cost Basis: $35.19